Would they pay the creditors?

A UMR surveys shows 70% of New Zealanders oppose the sale of the Crafar Farms to overseas investors, regardless of the buyers’ nationalities.

The poll (with a sample size of 750) was commissioned by the Crafar Farms Purchase Group and was carried out the weekend before the Labour Party unveiled its revamped overseas investment policy on March 11.

Purchase Group spokesman Alan McDonald said the poll reflected the consistent view that New Zealanders oppose the sale of productive farm land to overseas investors of any nationality.

Shanghia Pengxin has offered to pay $210 million for the farms. The Crafar Farms purchase group has offered only $171.5m.

I wonder what those surveyed would think about some $40 million in debts going unpaid if the farms weren’t sold to the people who have made the only offer acceptable to the receivers so far?

Do they realise that most, if not all, of that debt is owed to unsecured creditors, most of whom will be local people and small businesses who supplied and serviced the farms?

Do they feel so strongly opposed to the sale of the farms to foreigners that they would be prepared to pay those creditors?

2 Responses to Would they pay the creditors?

  1. Gravedodger says:

    Bit of a contrast to the way the people of Dunedin have rallied to give support to those similarly losing out with the ORFU rescue package.

  2. Roger Gower says:

    But those morons opposing the sale (on essentially xenophobic grounds) would happily have a NZ resident buy the farms, at a discount, denying the unsecured creditors payment, as you note (but the secured creditor the foreign owned australian bank gets its money back – huh?) all the while the new NZ resident owner borrows the money on first mortgage at the bank which has been capitalized using funds borrowed from offshore institutions. As I say the xenophobes are morons.

    The reaction to the Crafar farms sale is lunacy and luddite behavior. If foreign capital pulls out of buying NZ land and farms in particular then expect to see farm prices sag, LVR ratios to blow out and woe will re-enter farm balance sheets. That will not be good for anyone in NZ and will only have a bad outcome. There will be no gain for Shearers pet CGT project to tax – all asset holders be underwater. Farkin dumb.

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